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Recce Pharmaceuticals (ASX:RCE) has successfully filled its coffers ahead of its Phase III clinical trials in Indonesia and Australia, with the company this week landing “firm commitments” to place the full shortfall in its capital raise.
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The Australian biotech company raised $10.8 million with a non-renounceable entitlement offer that offered one RCE share at 28 cents each for every six held.
The key raise was rounded out with a $5 million private placement closed in April.
All this — which HotCopper understands will settle on June 6 — gives Recce licence to continue its multi-phase clinical trials and commercialisation efforts, which will now be backed by as much as $16 million in operating funds.
Recce will use the cash to complete the third phase of its diabetic foot infection registrational topical clinical trial in Indonesia, wrap up its acute bacterial skin and skin structure infections registrational topical clinical trial in Australia, and eventually “pursue any new clinical activities” that may also arise.
The former is particularly key for the biotech enterprise; its Indonesian trials are expected to be a revenue catalyst for the company as early as next year.
All this, Recce chairman Dr John Prendergast said, demonstrates “clear value.”
“[This raise] supports a critical step forward as we commence our Phase Three trials,” he explained on Tuesday. With cash in hand and trials now spinning into motion, the company has come to a “potential major inflection point.”
Importantly, he said, there’s an “opportunity to advance a new standard of care in infectious diseases, offering long-sought-after improved outcomes for patients.”
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Recce CEO James Graham celebrated the raise too: “This successful shortfall placement is very gratifying for Recce, particularly given the more challenging environment for raising capital for biotechnology companies.
“We are delighted to achieve our intended capital raise and receive this ongoing support from our existing institutional and sophisticated shareholders.”
RCE will open Wednesday at 32.5cps after dipping 5.8% through yesterday.
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